Saks Global Will Close Most Saks Off 5th Stores
Saks Global will close all but 12 of its 70 Saks Off 5th stores and wind down Saksoff5th.com amid Chapter 11 reorganization.
Overview
Saks Global said it will close all but 12 of its 70 Saks Off 5th stores and wind down Saksoff5th.com as part of its Chapter 11 reorganization.
The announcement follows Saks Global's Jan. 14 Chapter 11 filing and aims to shift focus toward full-price luxury sales across Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, the company said.
Geoffroy van Raemdonck, chief executive officer of Saks Global, said in a statement the steps "realign our business to better serve our luxury customers and drive full-price selling."
The company said it will also close the five remaining Last Call stores, begin going-out-of-business sales at certain Off 5th locations beginning Jan. 31 and Feb. 2, and started an online closing sale on Jan. 30.
Saks Global said the closures are subject to bankruptcy court approval and that it has a financing commitment of approximately $1.75 billion to support operations, while it did not disclose job-impact figures.
Analysis
Center-leaning sources frame the story as a business-driven shakeout, emphasizing financial causes (the $2.5 billion debt) and industry shifts (online commerce, weaker Chinese demand). Editorial choices—loaded phrasing like "buckled under the weight," omission of job impacts and employee voices, and reliance on corporate rationale—steer readers toward a management-and-market explanation.
Sources (5)
FAQ
Saks Global is closing most Saks Off 5th stores to realign its business toward full-price luxury sales at Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman as part of its Chapter 11 reorganization.
12 Saks Off 5th stores will remain open, located in New York, Florida, New Jersey, Georgia, Texas, and California, to sell overstock from flagship stores.
The bankruptcy was triggered by a liquidity crisis after the $2.7 billion acquisition of Neiman Marcus in 2024, leading to unsustainable debt, missed interest payments, and inventory issues.
Saks Global has secured approximately $1.75 billion in financing, including $500 million to $1 billion in DIP financing, to support operations through the Chapter 11 process.
Going-out-of-business sales begin on January 31 at some locations, February 2 at others, and online sales started on January 30, subject to court approval.
History
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